ANNEX TO DESPATCH

CONFIDENTIAL AND PERSONAL

DRAFT TERRITORIAL SURVEY

DSR 11C

Territory:

Population:

Special Factors: Propects for

independence:

Possible alterna-

tives to

independence:

Recommended

Policy:

British Virgin Islands 10,500

None

Should become financially independent when budgetary aid is ended in 1979. At present the local preference is to remain dependent, mainly because of a lack of political

self-confidence, and absence of a political

leader of sufficient stature to take the

country to independence. Otherwise no special economic or political obstacle to eventual independence.

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ii.

Union with the US Virgin Islands

unlikely either to be acceptable to

the population or constitutionally feasible;

union with other Caribbean territories

- not acceptable to the population.

Accept dependence for the present, but seek

in all ways to create the will and objective conditions for independence. Ways of achieving this might include making it clear through firm government that continued dependence implies accepting certain unpop- ular conditions. It is possible that an

attractive aid package at the right moment might also help to create the necessary will for independence.

CONFIDENTIAL AND PERSONAL

D 107991 400,000 7/76 904 953

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